Business
Expanding China’s Influence in Open-Source AI
The Chinese startup DeepSeek has released its latest artificial intelligence model, V4, continuing its strategy of utilizing open-source technology to challenge American dominance in the AI sector.
Key Points
- Technical Performance: DeepSeek V4 is highly specialized in writing computer code, significantly outperforming other existing open-source systems in that category.
- Open-Source Strategy: Unlike American giants, Chinese AI companies have largely embraced open-source distribution, which has accelerated the adoption of their models in sectors like robotics, logistics, and manufacturing.
- Global Market Impact: Chinese open-source models accounted for approximately one-third of global AI usage by the end of 2025, with DeepSeek and Alibaba emerging as the primary providers.
- Geopolitical Tensions: The competition has evolved into a power struggle; the U.S. has imposed export controls on advanced chips to hinder Chinese AI development, while Chinese firms leverage open-source tools as “soft power” to capture market share abroad.
- Overcoming Hurdles: Despite facing restricted access to advanced hardware and lower R&D spending compared to Silicon Valley, Chinese firms are narrowing the technical performance gap through rapid release cycles and collaborative development.
- Security Implications: As these models become more proficient at writing and analyzing code, they are simultaneously becoming powerful tools for both improving and potentially exploiting software cybersecurity.
By providing high-performing, cost-effective models that are freely available to the public, DeepSeek and other Chinese firms are gaining significant global influence among developers and industries. While American companies like OpenAI and Anthropic maintain proprietary models and allege that Chinese firms gain competitive edges through unauthorized data distillation, China’s open-source approach has successfully positioned its technology as a critical tool for global economic growth and industrial application.
This strategy not only fosters collaboration and innovation across borders but also challenges the dominance of Western tech giants in the AI landscape. By prioritizing accessibility and affordability, Chinese firms are rapidly building a reputation for democratizing advanced technologies, enabling smaller enterprises and emerging markets to harness the power of AI. As a result, this open-source approach is reshaping the competitive dynamics of the global AI industry, prompting other nations to reconsider their strategies in balancing innovation with intellectual property protection.
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NEW YORK — The New York Times Connections Sports Edition puzzle No. 605 for Thursday, May 21, 2026, featured 16 sports-related words grouped into four categories centered on college game elements, pitching mound synonyms, Alpine skiing disciplines and Charlotte-based teams.
The puzzle, available through The Athletic, challenged players to sort the words into four groups of four. It carried a difficulty rating consistent with recent editions in the sports-themed variant.
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Hints for puzzle 605 included “Spotted at a game” for the yellow group, “Charlie Brown’s baseball home” for the green group, “Snow sport” for the blue group and “Queen City teams” for the purple group.
Yesterday’s puzzle on May 20, No. 604, included categories such as actions on a field goal attempt, U.S. Olympic host cities, Triple-A baseball teams and words ending in an NFL quarterback’s name.
The sports edition launched from beta and remains accessible via The Athletic’s platform or app, separate from the main NYT Games app. It targets fans with knowledge spanning multiple sports.
Players shared solve grids on social media, with many noting the college atmosphere group as accessible due to familiar game-day elements. The skiing disciplines required specific winter sports knowledge, while the Charlotte reference drew on NFL, MLS, NBA and college teams.
The pitching mound synonyms tested baseball terminology familiarity, with “rubber” as the official term for the pitcher’s plate. Alpine skiing categories highlighted Olympic and World Cup events.
Community discussions highlighted the puzzle’s mix of mainstream and niche sports references. International players sometimes found U.S.-centric elements like college game traditions more challenging.
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Walmart (WMT) earnings Q1 2027
Customers shop at a Walmart store on May 13, 2026 in Chicago, Illinois.
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With all eyes on the health of the U.S. consumer, Walmart‘s fiscal first-quarter earnings report Thursday morning may offer Wall Street some of the best clues yet.
The big box retailer is expected to report another quarter of growing sales and profits, but its commentary on consumer spending – if it’s seeing any pressure and where – could offer investors a view into the strength of the U.S. economy.
Here’s what analysts expect Walmart to report for the quarter, according to consensus estimates from LSEG:
- Earnings per share: 66 cents per share
- Revenue: $175 billion
In the three months since Walmart last reported earnings, there’s a new conflict in the Middle East, gas prices have soared and consumer sentiment has plummeted, falling to a fresh record low in May. The flurry of bad news comes on top of years of sticky inflation, higher interest rates and a global trade war that’s pushed prices even higher.
Walmart has long been among the best positioned to weather just about any economic storm, but given the wide consumer segments it caters to, it’s uniquely positioned to see whether and where cracks in the economy are forming.
Long a value play among lower-income shoppers, Walmart in recent years has been winning over more high-income consumers, which has helped fuel its growth and insulate it from economic shocks that have hit lower earners more acutely.
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If consumers start pulling back, leading to a greater concentration of lower-margin groceries over higher-margin discretionary goods, Walmart’s additional revenue streams are expected to help offset those pressures. Its advertising and marketplace businesses are both high-margin revenue streams that have helped Walmart keep prices low and maintain profits.
So far this earnings season, major companies have largely said consumer spending has held up in the face of higher gas prices. But that resilience also came amid higher tax returns, which Target said on Wednesday may have fueled some of the growth it saw during the first quarter.
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Here is what you need to know
On 06 April, a false tweet about President Donald Trump’s plans for tariffs led the S&P 500 to swing eight percentage points in minutes.
However, the $2.7 trillion market rebound wasn’t driven by traders themselves, but by algorithmic trading bots trained to react within seconds to announcements that might affect the stock market.
Speaking to Bloomberg, Benn Eifert Managing partner and co-chief investment officer at the hedge fund QVR Advisors said “You have a daisy chain of buying reactions in response to a headline”. He added, “algorithms are tuned to react extremely quickly to any kind of headline reversing tariffs.”
It was a reminder, if one was needed, that AI is already influencing markets.
AI is already dominating algorithmic trading
It is estimated that 70-80% of trading volume on the US stock market is executed through AI and algorithmic trading systems. Globally, the figures are even higher. Almost 89% of global trading volume is handled by AI-driven algorithms.
As AI tools have become more powerful, hedge funds and algorithmic traders have leaned increasingly on the technology; and for good reason too.
A few years ago, you would have had good reasons to doubt AI’s precision. But now, there can be no questioning its ability to process huge volumes of data in real-time and make close-to accurate forecasts.
How has AI changed algorithmic trading?
Think of AI as a multiplier of an algorithm’s ability. Satellite imagery of retail car parks, earnings call transcripts, social media sentiment, breaking news: AI can ingest all of it in real time and extract signals from sources that would have been invisible, or at least opaque a decade ago, even to the most advanced algorithm.
AI helps traditional algorithmic trading models move beyond constrained rule-based systems. AI models can learn and adapt, improving their efficiency and trades. The level of precision this produces marks a significant evolution from the rule-based algorithmic trading systems of the previous generation.
Humans: the often-forgotten driver of AI, and algorithmic trading
One element that is frequently omitted in the AI trading discussion, and arguably the most important, is the human.
Rotem Farkash, AI and trading expert weighed in on the subject, “AI models are only as good as the conditions and data they were trained on.”
Farkash argued, “Automated systems enable firms to operate far beyond traditional human capabilities; that is a fact. However, human judgment, and input, remains vital to AI and algorithmic trading, at least for the present.”
24/7 markets and operational edge
AI and algorithmic trading models have also changed the timeframe of trading. Your AI model or algorithm can place trades 24/5, or longer. Gone are the traditional 6.5-hour trading days in one geography or another.
AI also enables ‘round the clock’ support and market monitoring, increased liquidity and the ability to respond swiftly to price movements and global events.
AI Trading Risks: flash crashes
As seen with the huge swing in the S&P 500 in early April, AI’s introduction to trading is not without risks.
The Warsaw Stock Exchange (WSE) also suspended trading this month for over an hour after a surge of automated high-frequency orders triggered a feedback loop of bot-driven sell orders the exchange’s own systems could not contain.
Warsaw’s WIG20 index had plunged 7% before the plug was pulled. It took manual human intervention to restore order and the WSE subsequently vowed to review its algorithmic trading regulations entirely.
Regulators have responded more broadly too. In February 2026, ESMA issued a supervisory briefing identifying seven areas of increased oversight focus, with AI in trading featuring among them.
AI is here to stay in Finance and Trading
There is no doubt that AI is here to stay in trading and the case for its use is formidable. AI can extract signals from data that would have taken human analysts weeks to process. But it is not risk free.
For now, AI is only as good as the data and conditions it has been built on. What it looks like when that changes will be one the most consequential open questions in finance.
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